Macro: It’s all about elections and keeping status quo
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
Head of FX Strategy
Summary: Traders have rushed to trade the sterling strength as the recent break higher in all GBP crosses has seen significant follow through on growing confidence that a no-deal Brexit will be avoided. Elsewhere, action is largely muted.
Page 2: GBP strength all over the map here as well, and we discuss EURNOK below, even if we are some distance from a breakout.